Yiren Digital Reports Third Quarter 2022 Financial Results

Rhea-AI Summary

Yiren Digital Ltd. (NYSE: YRD) reported its financial results for Q3 2022, showing a 31.8% decline in total net revenue to RMB840.7 million (US$118.2 million) compared to the same quarter last year. The credit-tech business revenue decreased 44.8% to RMB493.4 million (US$69.4 million). However, the company served 3,080,757 clients, a 17.9% increase year-over-year, and achieved a net income of RMB270 million, reflecting a margin of 32.2%, up from 26.0% a year ago. Yiren plans to achieve revenue of RMB0.9 to RMB1.1 billion in Q4 2022, maintaining stable profit margins.

Positive

• Cumulative clients served increased to 3,080,757, up 17.9% year-over-year.
• Net income reached RMB270 million with a profit margin of 32.2%, an improvement from the previous year.
• Insurance brokerage premiums grew by 36%, significantly above the industry average.

Negative

• Total net revenue decreased by 31.8% compared to Q3 2021.
• Credit-tech business revenue down 44.8%, impacting overall financial performance.
• Outstanding balance of performing loans fell by 22.9% year-over-year.

BEIJING, Nov. 22, 2022 /PRNewswire/ -- Yiren Digital Ltd. (NYSE: YRD) ("Yiren Digital" or the "Company"), a leading digital personal financial management platform in China, today announced its unaudited financial results for the quarter ended September 30, 2022.

Third Quarter 2022 Operational Highlights

Holistic Wealth Business

• Cumulative number of clients served reached 3,080,757 as of September 30, 2022, representing an increase of 17.9% from 2,612,279 as of September 30, 2021.
• Number of active clients^[1] was 621,137 as of September 30, 2022, representing an increase of 45.2% from 427,873 as of September 30, 2021. The increase was driven by our expanding insurance brokerage business and Yiren Select initiatives.
• Total client assets^[2] reached RMB22,795.8 million (US$3,204.6 million) as of September 30, 2022, representing an increase of 30.9% from RMB17,415.3 million as of September 30, 2021.
• Sales volume of investment products amounted to RMB4,476.4 million (US$629.3 million) in the third quarter of 2022, representing a decrease of 11.0% from RMB5,030.2 million in the third quarter of 2021. The decrease was due to the changes of product mix.

Credit-tech Business

• Total loans facilitated in the third quarter of 2022 reached RMB6.3 billion (US$0.9 billion), representing a decrease of 7.9% from RMB6.8 billion in the third quarter of 2021. The decrease was mainly due to the strategic optimization of our product structure.
• Cumulative number of borrowers served reached 6,960,095 as of September 30, 2022, representing an increase of 19.2% compared to 5,840,424 as of September 30, 2021.
• Number of borrowers served in the third quarter of 2022 was 737,320 representing an increase of 34.4% from 548,495 in the third quarter of 2021. The increase was due to our improved services, enriched membership benefits as well as enhanced customer engagement.
• Outstanding balance of performing loans facilitated reached RMB10,630.4 million (US$1,494.4 million) as of September 30, 2022, representing a decrease of 22.9% from RMB13,793.9 million as of September 30, 2021. The decrease was due to the scale back of our offline business as part of our business optimization process coupled with impacts from the pandemic resurgence.

Consumption-Driven Services

• Total gross merchandise volume generated through our e-commerce platform and "Yiren Select" channel reached RMB249.6 million (US$35.1 million) in the third quarter of 2022.

"We are pleased to deliver a resilient quarter with solid business recovery and continued improvement in profitability post our product restructuring and pandemic resurgence in the first half this year," said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital.

"Regarding our holistic wealth business, our insurance brokerage business continues its strong momentum this quarter, becoming an essential revenue pillar. In the third quarter of 2022, our total premiums reached RMB1 billion, representing a 36% increase year on year, surpassing the industry average growth rate by over six times. Revenue generated from Hexiang Insurance brokerage services reached RMB189 million, accounting for more than 22% of total revenue in the third quarter this year, and we expect to see an accelerated double-digit growth in the fourth quarter, driven by our outstanding capabilities in product customization and innovation."

"On our credit-tech business, new loan portfolios post the product optimization enjoy higher operating efficiencies and lower borrowing costs, translating into healthier unit economics that allows us to better scale. In the third quarter this year, our total loan volume reached RMB6.3 billion, accounting for 66% of total loans facilitated in the first half this year and reaching close to pre-restructuring level. Given the current strong demand for our loan-facilitation services, especially for our small revolving loans, we project a further two-digit growth quarter over quarter in total loan volume in the fourth quarter this year."

"We delivered a solid profit of RMB270 million this quarter, reflecting a net income margin of 32.2%, up 6.2 percentage points from the same period of last year as we enjoy better unit economics post the product-restructuring and continue to improve our cost control," said Ms. Na Mei, Chief Financial Officer of Yiren Digital. "Turning to our balance sheet, we remained at a strong cash position with usable cash reaching RMB4.7 billion as of September 30, 2022, reserving sufficient buffer for the further execution of our share repurchase plan announced earlier this year as well as providing enough fuels for any new business opportunities going ahead."

Third Quarter 2022 Financial Results

Total net revenue in the third quarter of 2022 was RMB840.7 million (US$118.2 million), representing a decrease of 31.8% from RMB1,232.0 million in the third quarter of 2021. Particularly, in the third quarter of 2022, revenue from credit-tech business was RMB493.4 million (US$69.4 million), representing a decrease of 44.8% from RMB894.4 million in the same period of 2021. The decrease was due to the strategic shift of our product structure and pricing. Revenue from holistic wealth business was RMB294.3 million ($41.4 million), representing a decrease of 12.8% from RMB337.6 million in the third quarter of 2021. The decrease was due to the declined sales volume of investment products.

Sales and marketing expenses in the third quarter of 2022 were RMB136.4 million (US$19.2 million), compared to RMB407.2 million in the same period of 2021. The decrease was primarily due to the optimization of cost structure for our offline business.

Origination, servicing and other operating costs in the third quarter of 2022 were RMB223.6 million (US$31.4 million), compared to RMB186.9 million in the same period of 2021. The increase was due to the expanding insurance brokerage business.

General and administrative expenses in the third quarter of 2022 were RMB109.9 million (US$15.5 million), compared to RMB139.3 million in the same period of 2021. The decrease was mainly due to the optimization of the Company's offline business.

Allowance for contract assets, receivables and others in the third quarter of 2022 was RMB35.1 million (US$4.9 million), compared to RMB83.6 million in the same period of 2021. The decrease was primarily due to the impact of the optimization of product mix.

Income tax expense in the third quarter of 2022 was RMB70.0 million (US$9.8 million).

Net income in the third quarter of 2022 was RMB270.3 million (US$38.0 million), as compared to RMB320.9 million in the same period in 2021. The decrease was due to the declined revenue amid product structure transitions yet net income margin increased to 32.2% in the third quarter of 2022 from 26.0% in the same period of 2021 due to the improved cost efficiency.

Adjusted EBITDA^[3] (non-GAAP) in the third quarter of 2022 was RMB365.0 million (US$51.3 million), compared to RMB438.6 million in the same period of 2021.

Basic and diluted income per ADS in the third quarter of 2022 was RMB3.0 (US$0.4) and RMB3.0 (US$0.4), compared to a basic per ADS of RMB3.8 and a diluted per ADS of RMB3.7 in the same period of 2021.

Net cash generated from operating activities in the third quarter of 2022 was RMB342.9 million (US$48.2 million), compared to RMB323.8 million in the same period of 2021.

Net cash used in investing activities in the third quarter of 2022 was RMB835.1 million (US$117.4 million), compared to RMB233.8 million in the same period of 2021.

[1] Active clients refer to those who have made at least one investment through our holistic wealth ecosystem or have client assets with us above zero in the past twelve months.

[2] Client assets refer to the outstanding balance of client assets generated through our platforms, where an asset is counted towards the outstanding balance for so long as it continues to be held by the clients on our platforms.

[3] "Adjusted EBITDA" is a non-GAAP financial measure. For more information on this non-GAAP financial measure, please see the section of "Operating Highlights and Reconciliations of GAAP to Non-GAAP Measures" and the table captioned "Reconciliations of Adjusted EBITDA" set forth at the end of this press release.

As of September 30, 2022, cash and cash equivalents were RMB3,613.0 million (US$507.9 million), compared to RMB4,354.5 million as of June 30, 2022 and RMB2,864.5 million as of December 31, 2021. As of September 30, 2022, the balance of held-to-maturity investments was RMB1.8 million (US$0.3 million), compared to RMB102.2 million as of June 30, 2022 and RMB2.2 million as of December 31, 2021. As of September 30, 2022, the balance of available-for-sale investments was RMB1,109.4 million (US$156.0 million), compared to RMB136.4 million as of June 30, 2022 and RMB177.4 million as of December 31, 2021.

Delinquency rates. As of September 30, 2022, the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 0.7%, 1.1% and 1.0% respectively, compared to 0.6%, 1.4% and 1.5% respectively as of June 30, 2022.

Cumulative M3+ net charge-off rates. As of September 30, 2022, the cumulative M3+ net charge-off rates for loans originated in 2019, 2020 and 2021 were 11.7%, 8.0% and 6.1% respectively, as compared to 11.7%, 7.8% and 5.3% respectively as of June 30, 2022.

Business Outlook

Based on the Company's preliminary assessment of business and market conditions, the Company projects the total revenue in the fourth quarter of 2022 to be between RMB0.9 billion to RMB1.1 billion, with net profit margin expected to remain stable.

This is the Company's current and preliminary view, which is subject to changes and uncertainties.

Recent Development

The board of directors of the Company (the "Board") has appointed Mr. Hiu Fung Vincent Pang as (i) a director of the Company, (ii) the chairman of the Nominating and Corporate Governance Committee, (iii) a member of the Audit Committee, and (iv) a member of the Compensation Committee, to succeed Ms. Chaomei Chen, who has resigned from the foregoing positions due to personal reasons. The director change became effective on November 22, 2022.

Mr. Hiu Fung Vincent Pang has over 30 years of experience in auditing, consulting and taxation. He served as a Partner at KPMG Consulting (China) Co., Ltd. for over 15 years until his retirement in December 2021, during which he served as the Partner in Charge of Northern China Tax department of KPMG Consulting (China) Co., Ltd. from 2017 to 2020. Previously, Mr. Pang held various positions at Deloitte Beijing, Beijing Zhonggongxin Certified Public Accountants Co., Ltd., PricewaterhouseCoopers Beijing, KPMG Vancouver and Dyke & Howard Vancouver from 1991 to 2006. Mr. Pang received a degree of Bachelor of Commerce from McGill University in Canada in 1991. Mr. Pang is also a Canadian Chartered Accountant.

The Board has determined that Mr. Hiu Fung Vincent Pang satisfies the "independence" requirements of Section 303A of the Corporate Governance Rules of the NYSE and Rule 10A-3 under the Securities Exchange Act of 1934, as amended.

"We are grateful for all the contributions that Ms. Chaomei Chen has made to the Company during the past six years and sincerely wish her all the best in her future endeavors," said Mr. Ning Tang, Chairman and Chief Executive Officer of Yiren Digital. "We would like to welcome Mr. Pang to Yiren Digital. Mr. Pang's extensive background in accounting, consulting and taxation will provide valuable insight and guidance to the Company," continued Mr. Ning Tang.

Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses several non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin as supplemental measures to review and assess operating performance. We believe these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and prospects and allow for greater visibility with respect to key metrics used by our management in our financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The non-GAAP financial measures have limitations as analytical tools. Other companies, including peer companies in the industry, may calculate these non-GAAP measures differently, which may reduce their usefulness as a comparative measure. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. See "Operating Highlights and Reconciliation of GAAP to Non-GAAP measures" at the end of this press release.

Currency Conversion

This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB7.1135 to US$1.00, the effective noon buying rate on September 30, 2022, as set forth in the H.10 statistical release of the Federal Reserve Board.

Conference Call

Yiren Digital's management will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on November 22, 2022 (or 9:00 p.m. Beijing/Hong Kong Time on November 22, 2022).

Participants who wish to join the call should register online in advance of the conference at:

https://s1.c-conf.com/diamondpass/10027037-fkc8rq.html

Once registration is completed, participants will receive the dial-in details for the conference call.

Additionally, a live and archived webcast of the conference call will be available at https://edge.media-server.com/mmc/p/tjzaznsw

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yiren Digital's control. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to Yiren Digital's ability to attract and retain borrowers and investors on its marketplace, its ability to introduce new loan products and platform enhancements, its ability to compete effectively, PRC regulations and policies relating to the peer-to-peer lending service industry in China, general economic conditions in China, and Yiren Digital's ability to meet the standards necessary to maintain listing of its ADSs on the NYSE or other stock exchange, including its ability to cure any non-compliance with the NYSE's continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in Yiren Digital's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Yiren Digital does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

About Yiren Digital

Yiren Digital Ltd. is a leading digital personal financial management platform in China. The Company provides customized, asset allocation-based holistic wealth solutions to China's mass affluent population as well as provides retail credit facilitation services to individual borrowers and small business owners.

 

 

 

Unaudited Condensed Consolidated Statements of Operations
(in thousands, except for share, per share and per ADS data, and percentages)
	For the Three Months Ended								For the Nine Months Ended
	September 30, 2021			September 30, 2022		September 30, 2022			September 30, 2021		September 30, 2022		September 30, 2022
	RMB			RMB		USD			RMB		RMB		USD
Net revenue:
Loan facilitation services	601,283			334,162		46,976			1,694,788		837,548		117,741
Post-origination services	39,024			74,433		10,464			124,394		166,720		23,437
Insurance brokerage services	199,406			189,019		26,572			510,911		532,770		74,896
Financing services	144,614			54,702		7,690			384,813		242,843		34,138
Electronic commerce services	-			52,954		7,444			-		173,742		24,424
Others	247,664			135,385		19,031			742,083		392,921		55,236
Total net revenue	1,231,991			840,655		118,177			3,456,989		2,346,544		329,872
Operating costs and expenses:
Sales and marketing	407,172			136,406		19,176			1,249,230		470,547		66,149
Origination,servicing and other operating costs	186,915			223,622		31,436			544,107		565,250		79,462
General and administrative	139,321			109,947		15,456			386,876		338,459		47,580
Allowance for contract assets, receivables and others	83,578			35,074		4,931			318,243		132,476		18,622
Total operating costs and expenses	816,986			505,049		70,999			2,498,456		1,506,732		211,813
Other (expenses)/income:
Interest expense, net	(21,565)			(378)		(53)			(55,327)		(29,741)		(4,181)
Fair value adjustments related to Consolidated ABFE	(526)			2,077		292			(49,162)		21,862		3,073
Others, net	3,934			3,035		427			23,730		18,930		2,661
Total other (expenses)/income	(18,157)			4,734		666			(80,759)		11,051		1,553
Income before provision for income taxes	396,848			340,340		47,844			877,774		850,863		119,612
Income tax expense	75,923			70,020		9,843			175,555		141,227		19,853
Net income	320,925			270,320		38,001			702,219		709,636		99,759
Weighted average number of ordinary shares outstanding, basic	170,193,542			179,409,525		179,409,525			168,719,693		173,174,370		173,174,370
Basic income per share	1.8856			1.5067		0.2118			4.1620		4.0978		0.5761
Basic income per ADS	3.7712			3.0134		0.4236			8.3240		8.1956		1.1522
Weighted average number of ordinary shares outstanding, diluted	171,571,392			179,841,065		179,841,065			169,972,343		173,962,494		173,962,494
Diluted income per share	1.8705			1.5031		0.2113			4.1314		4.0792		0.5735
Diluted income per ADS	3.7410			3.0062		0.4226			8.2628		8.1584		1.1470
Unaudited Condensed Consolidated Cash Flow Data
Net cash generated from/(used in) operating activities	323,819			342,888		48,202			(31,185)		1,377,540		193,651
Net cash  (used in)/provided by investing activities	(233,782)			(835,064)		(117,391)			(728,377)		(230,586)		(32,415)
Net cash provided by/(used in) financing activities	49,770			(276,198)		(38,827)			473,277		(434,572)		(61,091)
Effect of foreign exchange rate changes	(257)			2,284		321			(653)		3,592		505
Net increase/(decrease) in cash, cash equivalents and restricted cash	139,550			(766,090)		(107,695)			(286,938)		715,974		100,650
Cash, cash equivalents and restricted cash, beginning of period	2,280,660			4,427,408		622,395			2,707,148		2,945,344		414,050
Cash, cash equivalents and restricted cash, end of period	2,420,210			3,661,318		514,700			2,420,210		3,661,318		514,700

 

 

 

Unaudited Condensed Consolidated Balance Sheets
(in thousands)
	As of
	December 31, 2021		June 30, 2022		September 30, 2022		September 30, 2022
	RMB		RMB		RMB		USD
Cash and cash equivalents	2,864,543		4,354,487		3,612,972		507,904
Restricted cash	80,800		72,921		48,346		6,796
Accounts receivable	305,018		297,939		274,623		38,606
Contract assets, net	1,105,905		634,079		502,936		70,702
Contract cost	9,959		2,545		1,610		226
Prepaid expenses and other assets	352,015		266,636		361,258		50,785
Loans at fair value	73,734		19,812		11,109		1,562
Financing receivables	1,697,962		960,238		713,411		100,290
Amounts due from related parties	879,256		935,714		1,124,738		158,113
Held-to-maturity investments	2,200		102,200		1,800		253
Available-for-sale investments	177,360		136,362		1,109,408		155,958
Property, equipment and software, net	102,548		92,714		82,184		11,553
Deferred tax assets	7,388		75,555		102,934		14,470
Right-of-use assets	80,752		48,151		39,133		5,501
Total assets	7,739,440		7,999,353		7,986,462		1,122,719
Accounts payable	19,065		30,903		31,711		4,458
Amounts due to related parties	434,127		411,530		244,185		34,327
Deferred revenue	12,379		1,713		526		74
Payable to investors at fair value	50,686		49,605		39,598		5,567
Accrued expenses and other liabilities	1,182,783		1,242,139		1,234,738		173,577
Secured borrowings	1,028,600		869,300		767,900		107,950
Refund liability	5,732		5,390		351		49
Deferred tax liabilities	112,535		80,200		78,819		11,079
Lease liabilities	72,101		49,724		40,968		5,759
Total liabilities	2,918,008		2,740,504		2,438,796		342,840
Ordinary shares	123		123		129		18
Additional paid-in capital	5,100,486		5,107,095		5,158,676		725,195
Treasury stock	(42,897)		(42,897)		(42,897)		(6,030)
Accumulated other comprehensive income	11,553		4,772		7,509		1,056
Accumulated deficit	(247,833)		189,756		424,249		59,640
Total equity	4,821,432		5,258,849		5,547,666		779,879
Total liabilities and equity	7,739,440		7,999,353		7,986,462		1,122,719

 

 

 

Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures
(in thousands, except for number of  borrowers, number of investors and percentages)
	For the Three Months Ended								For the Nine Months Ended
	September 30, 2021			September 30, 2022		September 30, 2022			September 30, 2021		September 30, 2022		September 30, 2022
	RMB			RMB		USD			RMB		RMB		USD
Operating Highlights
Amount of investment in current investment products	5,030,228			4,476,390		629,281			16,196,885		15,394,970		2,164,191
Number of investors in current investment products	127,378			176,787		176,787			299,186		437,296		437,296
Amount of loans facilitated under loan facilitation model	6,841,921			6,298,522		885,432			17,025,066		15,839,577		2,226,693
Number of borrowers	548,495			737,320		737,320			967,057		1,228,435		1,228,435
Remaining principal of performing loans facilitated under loan facilitation model	13,793,925			10,630,352		1,494,391			13,793,925		10,630,352		1,494,391
Gross merchandise volume	-			249,624		35,092			-		395,762		55,635
Segment Information
Holistic Wealth:
Revenue	337,627			294,332		41,376			888,209		852,237		119,806
Sales and marketing expenses	55,463			46,698		6,565			123,494		142,480		20,030
Origination,servicing and other operating costs	159,348			165,605		23,280			442,363		403,738		56,757
Consumer credit:
Revenue	894,364			493,369		69,357			2,568,780		1,320,565		185,642
Sales and marketing expenses	351,709			88,714		12,471			1,125,736		325,934		45,819
Origination,servicing and other operating costs	27,567			39,951		5,616			101,744		113,454		15,949
Others:
Revenue	-			52,954		7,444			-		173,742		24,424
Sales and marketing expenses	-			994		140			-		2,133		300
Origination,servicing and other operating costs	-			18,066		2,540			-		48,058		6,756
Reconciliation of Adjusted EBITDA
Net income	320,925			270,320		38,001			702,219		709,636		99,759
Interest expense, net	21,565			378		53			55,327		29,741		4,181
Income tax expense	75,923			70,020		9,843			175,555		141,227		19,853
Depreciation and amortization	8,449			8,514		1,197			35,770		23,893		3,359
Share-based compensation	11,742			15,760		2,216			16,592		20,642		2,902
Adjusted EBITDA	438,604			364,992		51,310			985,463		925,139		130,054
Adjusted EBITDA margin	35.6 %			43.4 %		43.4 %			28.5 %		39.4 %		39.4 %

 

 

 

Delinquency Rates (Loan Facilitation Model)
		15-29 days		30-59 days		60-89 days
All Loans
December 31, 2019		0.8 %		1.3 %		1.0 %
December 31, 2020		0.5 %		0.7 %		0.6 %
December 31, 2021		0.9 %		1.5 %		1.2 %
March 31, 2022		0.9 %		2.0 %		1.9 %
June 30, 2022		0.6 %		1.4 %		1.5 %
Septempber 30, 2022		0.7 %		1.1 %		1.0 %
Online Channels
December 31, 2019		1.0 %		2.1 %		1.6 %
December 31, 2020		0.6 %		1.0 %		1.1 %
December 31, 2021		0.8 %		1.3 %		1.1 %
March 31, 2022		0.7 %		1.5 %		1.3 %
June 30, 2022		0.6 %		1.1 %		1.2 %
Septempber 30, 2022		0.6 %		0.9 %		0.8 %
Offline Channels
December 31, 2019		0.7 %		0.9 %		0.7 %
December 31, 2020		0.4 %		0.6 %		0.4 %
December 31, 2021		1.0 %		1.8 %		1.4 %
March 31, 2022		1.1 %		2.7 %		2.9 %
June 30, 2022		0.8 %		2.0 %		2.3 %
Septempber 30, 2022		1.3 %		1.9 %		1.9 %

 

 

 

Net Charge-Off Rate (Loan Facilitation Model)
LoanIssued Period		Amount of Loans Facilitated During the Period		Accumulated M3+ Net Charge-Off as of Septempber 30, 2022		Total Net Charge-Off Rate as of Septempber 30, 2022
		(in RMB thousands)		(in RMB thousands)
2019		3,431,443		401,135		11.7 %
2020		9,614,819		768,606		8.0 %
2021		23,195,224		1,414,959		6.1 %
2022H1		9,541,056		140,742		1.5 %

 

 

 

M3+ Net Charge-Off Rate (Loan Facilitation Model)
Loan Issued Period		Month on Book
		4	7	10	13	16	19	22	25	28	31	34
2019Q1		0.0 %	0.8 %	2.0 %	3.4 %	5.3 %	5.9 %	6.3 %	6.3 %	6.3 %	6.3 %	6.3 %
2019Q2		0.1 %	1.5 %	4.5 %	7.5 %	8.8 %	9.2 %	9.9 %	10.3 %	10.6 %	10.6 %	10.6 %
2019Q3		0.2 %	2.9 %	6.8 %	9.0 %	10.4 %	12.0 %	13.2 %	13.8 %	14.4 %	14.6 %	14.6 %
2019Q4		0.4 %	3.1 %	4.9 %	6.3 %	7.2 %	7.9 %	8.4 %	8.9 %	9.5 %	9.8 %
2020Q1		0.6 %	2.3 %	4.1 %	5.2 %	6.0 %	6.2 %	6.6 %	7.2 %	7.7 %
2020Q2		0.5 %	2.5 %	4.2 %	5.3 %	6.1 %	6.7 %	7.5 %	8.1 %
2020Q3		1.1 %	3.3 %	5.1 %	6.3 %	7.1 %	8.1 %	8.7 %
2020Q4		0.3 %	1.8 %	3.2 %	4.6 %	6.0 %	7.0 %
2021Q1		0.4 %	2.3 %	3.9 %	5.5 %	6.6 %
2021Q2		0.4 %	2.4 %	4.5 %	5.9 %
2021Q3		0.5 %	3.1 %	5.0 %
2021Q4		0.6 %	3.2 %
2022Q1		0.6 %

 

View original content:https://www.prnewswire.com/news-releases/yiren-digital-reports-third-quarter-2022-financial-results-301685018.html

SOURCE Yiren Digital

FAQ

What were Yiren Digital's revenue results for Q3 2022?

Yiren Digital reported total net revenue of RMB840.7 million (US$118.2 million) for Q3 2022, a decrease of 31.8% from the previous year.

How many clients does Yiren Digital have as of September 30, 2022?

As of September 30, 2022, Yiren Digital served a cumulative total of 3,080,757 clients.

What is Yiren Digital's net income margin for Q3 2022?

Yiren Digital achieved a net income margin of 32.2% in Q3 2022, up from 26.0% in the same quarter last year.

What guidance did Yiren Digital provide for Q4 2022?

Yiren Digital projects total revenue for Q4 2022 to be between RMB0.9 billion and RMB1.1 billion.

What were the key drivers of client growth for Yiren Digital?

The increase in clients was primarily driven by the expanding insurance brokerage business and the Yiren Select initiatives.